The NYT looks at the whispers of insider trading at SAC and, so far as I can tell, comes up with nothing.
Despite the 1995 censure, former SAC employees say that Mr. Cohen does not tolerate wrongdoing and that the firm, which manages about $13 billion, is being unfairly smeared. Its compliance department has about 15 employees who watch for suspicious trading patterns and other potential violations. The firm neither encourages nor condones insider trading, these former employees said.
“There was a culture of compliance,” one former manager said. “People who couldn’t explain how they were doing things were let go.”
Well darn – eventually, Walt Noel, Raj, Ric Bourke, Dom and the rest of the crowd on Round ‘Em up Hill will be in jail or run out of money and cease to be entertaining. I was hoping Mr. Cohen would take up the slack. Of course, there’s always the chance that Stevie’s neighbor on Crown Lane, noted cartoonist Jerry Dumas, will develop a taste for illegal behavior and keep the street in the running. He hangs out with that Yudain character and we all know what he’s capable of.
Rope provided by SAC
Isn’t this delicious. In searching the web for information about a Mark Adams, the latest SAC employee to be sucked into the inside trading scandal, I came across this link of political contributions made by SAC folks: Stevie hisself, plus all sorts of dummies living in Greenwich, all of whom made the maximum ($4,600) contribution to – wait for it, Christopher Dodd.
Stevie, you know that the definition of an honest judge is one who, once bought, stays bought. Chris Dodd is not an honest judge and if you couldn’t figure that out well, you may be a financial genius but your street smarts are those of a five-year tot brought up in Greenwich. What the hell’s the matter with you, Boy?
According to the WSJ, Raj Rajaratnam’s former colleagues, including Choo Beng Lee, are ratting him out. The man’s going down and his Galleon Fund will be dead by the end of the month, which is a fitting end for a man who once paid Kenny Rogers $4 million to come up to the Round Hill place for a birthday bash and play “The Gambler’ eleven times, non-stop. “Somewhere in the darkness, the gambler he broke even”. And all that.
So let’s assume that 557 Round Hill will soon be on the block. Who else might be selling soon? Well, the presence of Choo Beng Lee as a cooperating witness in the broader FBI probe of insider trading is interesting because Mr. Lee once worked for SAC, Steven Cohen’s fund. Jealous competitors have long alleged that Cohen’s success could only come from trading on inside information, an allegation never substantiated. Does Lee have anything that might help prove their case? I have absolutely no idea, but it will be interesting to watch. Cohen’s got something like $45 million tied up in that house of his on Crown Lane which he’ll never get back, but it is certainly worth something. Maybe Jerry Dumas, across the street, will want to expand his land holdings.
And of course, there are always the rumors of another ongoing FBI investigation into mortgage fraud here in Greenwich committed by a certain bank, some of its officers and various developer/builders. These stories make the rounds periodically and nothing has come of them so far, but the latest word on the status of the investigation offers hope to real estate gossip columnists everywhere (or in Greenwich, anyway) that there will soon be grist for the mill. Not that I wish anything bad to happen to these people mind you ….
So we’ll just have to wait and see. My guess is that some large houses will be hitting the market this year, under less than optimum conditions, but that could be for any number of reasons, not just the presence of U.S. Marshals on the front stoop.
Dealbreaker informs us that during the two weeks Stevie Cohen is exhibiting his painting collection at Sotheby’s (the art store, not the Century 21 – owned real estate agency of the same name), the 10th floor deli is prohibited from selling panini. Lattes; corned beef on rye, hold the mustard, fine; but no panini, per express demand of Mr. Cohen. I can’t imagine what a panini ever did to the man to incur his wrath and cause this banishment but I know that Greenwich is populated with SAC survivors, and perhaps they can shed some light on this food allergy.
"But cake's okay, right?"